EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Adam C. Derbyshire Mike Freeman
Vice President and Director, Investor Relations and
Chief Financial Officer Corporate Communications
919-862-1000 919-862-1000
SALIX PHARMACEUTICALS ANNOUNCES
STRATEGIC MODIFICATIONS TO
LEADERSHIP STRUCTURE
Bob Ruscher, Executive Chairman of the Board
Carolyn Logan, President and Chief Executive Officer
RALEIGH, NC, July 15, 2002 - Salix Pharmaceuticals, Ltd. (Nasdaq:SLXP) today
announced that, effective immediately, Bob Ruscher will serve as Executive
Chairman of the Board of Directors and Carolyn Logan will assume the role of
President and Chief Executive Officer. Ms. Logan also has been appointed to the
Salix Board of Directors. Randy Hamilton, one of the Company's co-founders and
current Chairman, has retired from the Board, but will continue to serve the
Company in its focus on acquiring additional products. Following these announced
changes, the Salix Board of Directors will continue to be comprised of three
independent and outside directors - John Chappell, Thomas D'Alonzo and Richard
Franco - and two company employees - Bob Ruscher and, now, Carolyn Logan. The
Board unanimously agreed upon the leadership structure modifications announced
today.
This leadership structure reflects the evolution of Salix from a start-up
operation to a growing, successful commercial business. Salix is executing a
two-pronged growth strategy that involves maximizing the commercial potential of
its current products and acquiring or in-licensing additional products. In order
to position the Company to capitalize on opportunities to expand the business,
Ms. Logan and Mr. Ruscher will work in tandem, with Ms. Logan directing the
development and commercialization of current
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and future products and Mr. Ruscher providing strategic direction for the
Company and working on product acquisition opportunities.
Commenting on the leadership structure, Mr. Ruscher stated, "Today Salix is
first and foremost a sales and marketing company. We believe that Carolyn's
20-plus years of sales and marketing experience and proven track record in
creating top-performing organizations qualify her to lead Salix to the next
level as a commercially-focused specialty pharmaceutical company. Going forward,
Carolyn will direct the day-to-day operations of the business, and I will
provide strategic direction for the business and work to secure new products to
fuel the growth of the Company.
"With our experienced and talented senior management team, specialty sales
force, capital resources, and the recently announced Dr. Falk Pharma
collaboration, the Company is the strongest it has ever been. I look forward to
building from our position of strength and believe that the new structure we are
incorporating best positions us to take advantage of opportunities to leverage
the Company's infrastructure. I also would like to thank Randy Hamilton for his
leadership in founding, growing and shaping Salix into the organization it is
today. I look forward to his ongoing contribution as we work together to
in-license and acquire new products."
Ms. Logan commented, "I am pleased and honored to be named President and Chief
Executive Officer and a member of the Board of Salix. I would like to thank Bob
Ruscher, and the Company's co-founders, Randy Hamilton and Lorin Johnson, for
their unwavering commitment and contributions to making Salix a reality. Through
Bob's leadership he has clearly set the stage and created the environment for
success. We now have the opportunity to move beyond the start-up phase and
develop Salix into a very successful commercial enterprise.
"Gastrointestinal disease has a significant impact on the health and well being
of millions of patients, yet few major pharmaceutical companies have focused
their commercial efforts on the specialists in this therapeutic area. We are
committed to establishing a
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franchise with gastroenterologists in order to provide them and their patients
with product innovations for the treatment of gastrointestinal disease. I look
forward to working with the Salix team as we strive to succeed in our mission to
become the leading specialty pharmaceutical company providing products to
gastroenterologists and their patients."
"It has been most rewarding to oversee the evolution and growth of Salix from
its inception until now," stated Randy Hamilton, Co-Founder. "Over the past two
years, in particular, the management team has created a specialty pharmaceutical
company that is poised for success. I have confidence that the Company will
continue to prosper under the capable leadership of Bob and Carolyn."
Based upon information currently available, the Company estimates that net
COLAZAL(R) sales for 2002 will be between $30 and $35 million.
The Company will host a conference call at 10:00 a.m. EDT, on July 16, 2002 to
discuss the subjects of this press release. Interested parties may access the
conference call by way of web cast or telephone. The live web cast will be
available at http://www.salix.com. The web cast will be archived on the
Company's web site through July 22. The telephone numbers to access the
conference call are (800) 500-0177 (U.S. and Canada) or (719) 457-2679
(international.) A replay of the call will be available from 1:00 p.m. EDT, July
16 through July 22. The telephone numbers to access the replay of the call are
(888) 203-1112 (U.S. and Canada) or (719) 457-0820 (international.) The access
code for the replay is 140756.
Salix Pharmaceuticals, Ltd., headquartered in Raleigh, North Carolina, develops
and markets prescription pharmaceutical products for the treatment of
gastrointestinal diseases. Salix's strategy is to in-license late-stage or
marketed proprietary therapeutic drugs; complete the required development and
regulatory submission of these products; and market them through the Company's
60-member gastroenterology specialty sales force. Salix's first marketed product
is COLAZAL(R) (balsalazide disodium) Capsules 750 mg, an anti-inflammatory drug
approved for the treatment of mildly to moderately
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active ulcerative colitis. The Company launched the product in the U.S. through
its specialty sales force in January 2001. COLAZAL was well tolerated in
clinical studies. In clinical trials, patients reported the following adverse
events most frequently: headache (8%); abdominal pain (6%); diarrhea (5%);
nausea (5%); vomiting (4%); respiratory infection (4%); and arthralgia (4%).
Withdrawal from therapy due to adverse events was comparable to placebo. Salix's
next product candidate is rifaximin, currently in development for the potential
treatment of infections of the lower gastrointestinal tract. The Company
submitted an NDA for rifaximin for the treatment of travelers' diarrhea to the
FDA on December 26, 2001. Salix trades on the Nasdaq National Market under the
ticker symbol "SLXP."
For more information please contact the Company at 919-862-1000 or visit our web
site at www.salix.com.
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Please Note: This press release contains forward-looking statements
regarding future events. These statements are just predictions and are
subject to risks and uncertainties that could cause the actual events or
results to differ materially. These risks and uncertainties include
management of rapid growth, risks of regulatory review and clinical trials
and, the need to acquire additional products. For more detail on these and
other risks facing the Company, you should read the documents that the
Company files from time to time with the Securities and Exchange
Commission.
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